Friday, February 28, 2014

Four rules to keep in mind when shipping old bonds and share certificates :

You shall wrap them waterproof !

You shall not tape them !

You shall not fold them !

You shall not trim them !

Rule 1 : Wrap waterproof

Certificates are usually shipped in a paper or cardboard envelope or package. The receiver of the package obviously expects a good reception, of course. However, packages are doomed to get wet due to bad weather conditions. Paper and cardboard just love water, they suck water whenever possible. Once wet, the package probably stays wet until its arrival. The contents of the package, a nice stock certificate, is also made of paper. Need I say more ?

Franklin Computer CorporationCommon shares, 1988

Below you can see what happened to this stock certificate of the Franklin Computer Corporation. Itwas not shipped waterproof. The certificate was simply put in an envelope by the sender.

interior of an envelope

The sender did not notice the nicely printed pattern on the interior of the envelope, and neither he expected his package would have to deal with rainfall, snow or water. The package got wet, the ink of the envelope pattern inside got wet and, under pressure, was transferred to the certificate. Not a nice result, despite three stickers labeled 'FRAGILE: Handle with Care' and a stamp 'DO NOT BEND'.

left: detail from the envelope's inner side , right: detail from the received certificate

double-click images to enlarge

Senders can avoid this situation simply by inserting the certificates in one or more plastic sleeves and tape the overlapping sleeves together (don't tape the certificate, see rule number two). This solution may not be 100% waterproof, but at least there is a greater chance that the certificate arrives in good condition.

Rule 2 : Do not tape certificates
This rule is obvious to collectors but believe it or not, some people fix certificates to an extra thin cardboard in the envelope with adhesive tape. Check out what happened to this specimen stock certificate of the Fairchild Camera and Instrument Corporation.

This certificate was fixed to a thin cardboard in the envelope by means of ordinary adhesive tape. When the tape is applied with pressure, it sticks just "wonderful". I think the sender pressed the tape firmly, or the envelope must have been tucked away in the postman's bag between hundreds of other envelopes. Whatever .. I tried my very best to remove the tape gently and with the utmost care, but I could not prevent that a piece at the edge was teared away from the paper.

Removing the tape was a failure.

I contacted the seller and talked about this situation and by agreeing to refund a part of the amount paid, he kept a potential customer.

This catalogue accompanies the main exhibition currently presented in Wertpapierwelt's scripophily museum. An easy read, written for the broad public, and still comprehensive, this work makes us understand about the how, what, when and why of securities and capitalism. Do you know the difference between a subscription right and an interim certificate ? Can you tell why the introduction of bearer stocks made sense at a specific moment in history ? You'll find answers on questions like these and many more in this handy publication.

8. Kriegsanleihe, Germany, 1918design by Hanns Johannes Anker (1873-1950) one of many certificates featured in the bookimage by courtesy of Wertpapierwelt

Tip
Both the English and French editions are printed as a booklet (Price: 15 CHF). Pages contain up to three smaller images. The German edition (Price: 20 CHF) is published as a book with a hard cover counting twice as many pages. The contents is the same but the images are larger (one per page). For the linguists among us, why not buy an English or French edition together with the German edition. Not only will you enjoy larger images, but you can immerse yourself in a German scripophily language course.